INFORMAL GROUP

• Groups which are not formal

• Refers to the relationship between people in
the organization based on personal attitudes,
emotions, prejudices, likes, dislikes, etc.
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• Features of Informal Group
– Unplanned structure
– Fulfillment of social needs
– No formal structure
– Informal leaders
– Informal communication system
– No rules and regulations
– No fixed tenure
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• Types/Forms
– Friendship Groups
– Interest Groups
– Reference Group
– Cliques (Dalton)
• Vertical cliques
• Horizontal cliques
• Mixed Cliques
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• Types/Forms (Cont’d)
– Sub-cliques
– Isolates (Leonard R. Sayles)
• The Apathetic Group
• The Erratic Group
• The Strategic Group
• Conservative Group
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• How do informal groups formed?
– Informal groups are created in the organization
because of operation of social and psychological
forces operating at workplace. Informal groups
develop apart from officially prescribed plan of
the organization.
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• Why do people form and join groups?
– Safety and Security Needs
– Relatedness or Belongingness Needs
– Esteem Needs
– Power
• There is strength in numbers and
• United we stand, divided we fall.
– Identity
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• Advantages
– Pleasant work environment for its members.
– Needs and desires of the members are easily satisfied.
– Work performance becomes easier on account of
mutual cooperation.
– Psychological support to their members.
– It establishes group standards of performance.
– Need for close supervision is also minimized.
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• Advantages (Cont’d)
– Facilitate research and innovation.
– Reduces employee turnover and absenteeism.
– It develops group spirit and pride.
– Highly cohesive groups feel less nervous.
– Grapevine complements and supplements official
communication, and
– Groups helps to safeguard their members from
outside pressure.
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• Disadvantages
– Informal Groups often establish production norms
below the physical capabilities of their members.
– Groups insist on the observation of the groups
norms.
– Groups cohesiveness impedes acceptance of new
employees.
– Groups often hide their innovations from
management and adopt them in their own
interest.
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• Disadvantages (Cont’d)
– Groups often oppose the management policies
and procedures.
– Groups often spread rumors affecting the smooth
functioning of the organization.
– Groups often demand a price for co-operation.
– Jurisdictional disputes among groups create
problems for management.
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• Formal and Informal Groups (A Comparison)
Basic of Formal Informal
comparison organization organization
Formation Planned and Spontaneous
deliberate
Purpose Well-set goals Social interaction

Structure Well structured Unstructured

Nature Official Unofficial

 INFORMAL GROUP
• Formal and Informal Groups (A Comparison)
Basic of Formal Informal
comparison organization organization
Focus Positions Persons
Leadership Superior Any one
Source of power Delegated Given by group
Guidelines for Rules and Group norms
behaviour procedure
Sources of Reward/punishm Sanctions
control ent
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• Making Better Use of Informal Organization
THANK YOU!!!